Reuters reported that power distribution companies have applied for stimulus package, as demand for electricity has plunged due to coronavirus pandemic. As such, distributors lack financial means to pay to transmission system owners. The sector currently needs roughly $2 billion, so that distribution companies meet their obligations, that is to provide electricity to end customers.
Brazil’s government has admitted that it had held discussions with some state-owned and private banks. But it hasn’t stated yet what amount we are talking about, and Reuters is awaiting any comment by Brazil’s Mines and Energy Ministry. The proposed loans are predicted to be repaid over a period of 60 months. Half of interest rates could be covered by utilities, and the rest would be included in the electricity price. Upcoming days will show whether the loans will be approved or not.